Echo Bay set to exploreo near Sunnyside gold mine

Sunnyside Gold Corp., a wholly- owned subsidiary of Echo Bay Mines, has signed an option agreement with a U.S. company on ground adjacent to the Sunnyside mine near Silverton, Colo.

Echo Bay can earn a 51% interest in two claim groups totalling 53.5 acres adjacent to the Sunnyside mine over the next three years by spending a total of $5 million on exploration and development.

The properties cover the projected extension of the main producing vein in the 750-ton-per-day mine which has been refurbished by Echo Bay at a cost of $5.5 million(US). The vein is exposed by underground development within 32 ft of the claim boundary, according to property vender Gerber Energy International.

First developed as a mine in 1890, the Sunnyside operated until 1938 when it was closed because of depressed metals prices. The mine was reopened in 1959 by Standard Metal, but was shut down again in March, 1985, because of financial problems stemming from that company’s non-mining operations.e

Echo Bay acquired the mine for $20 million(US) plus a 30% net profits royalty.

Sunnyside’s proven and probable reserves at Dec 31, 1985, were 473,000 tons grading 0.24 oz gold and 3.59 oz silver per ton. In the six months of operation this year the mine is expected to produce 25,000 oz of gold and 300,000 oz of silver.